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When making tax payments to HMRC, you are currently only charged a fee if you pay by business credit card, while payments by personal credit card are not permitted. However, from 1 November 2020, payments made using a business debit card will also attract a fee.

The rationale behind the change is to avoid any cost to the public purse, so business debit card users will be charged a fee equal to the total cost incurred by HMRC when receiving the card payment.

Alternatives

HMRC accepts a wide range of alternatives which will not incur charges for the taxpayer, including:

• Online banking – Quick and easy to set up, with the advantage that details are saved for the future, with Faster Payments normally being immediate. You can also pay with CHAPS or Bacs or use telephone banking.
• At your bank or building society – This method is only an option if you still receive paper statements from HMRC and also have the paying-in slip HMRC sent you (printing one is not an option).
• Direct debit – Set up is via your HMRC online account, this is not quite as convenient as online banking, with payments normally taking longer to process. You need to plan ahead if paying by direct debit. HMRC says to allow five working days to process a Direct Debit the first time one is set up, and three working days the next time if you’re using the same bank details.
• By cheque through the post – You can print a payslip to use if HMRC has not sent you one. Allow three working days for the payment to reach HMRC, with an obvious delay if the cheque is not completed correctly.

The fee-change is only to business debit cards, so payments made using a personal debit card can continue to be made to HMRC free of any charges.

HMRC has online guidance on paying your taxes.

On 12 May, the Chancellor announced changes to the operation of the Coronavirus Job Retention Scheme (CJRS) and set out details on how the scheme will operate as people return to work. The good news is the scheme will continue in its current form until August. The not so good news: from September, the amount of the grant to employers will be tapered to reflect employees returning to work. 

Initially, employers will be required to pay their employees’ National Insurance and pension contributions with the government paying 70% of wages up to a cap of £2,187.50 and employers will contribute 10% of wages to make up the 80% total up to a cap of £2,500. Then, from October, the government’s

contribution will be reduced to 60% of wages up to a cap of £1,875 with employers required to pay the remaining 20%.

The revised scheme includes an announcement that new entrants to the scheme will need to have been furloughed for at least three weeks prior to 1 July i.e. those employees who on 30 June had been on furlough at least three weeks under the existing scheme. The CJRS is currently scheduled to close at the end of October. 

Workers eligible under the self-employment income support scheme will be able to claim a second and final grant in August. The grant will be worth 70% of their average monthly trading profits paid in a single instalment covering three months’ worth of profits and capped at £6,570.

HMRC has shot yet another salvo across the bows of employers claiming grants under the government’s Coronavirus Job Retention Scheme (CJRS), by announcing an increase in the number of reports it has received regarding potentially fraudulent claims. Apparently, at the date of this piece, the new number is 1,868 up by 1,073 from the original number announced on 12 May 2020.

A word to the wise: the fact that HMRC has made two announcements in less than four weeks on the number of reports received is indicative of a potential launch of investigations into to the receipt of CJRS grants by some employers. The problem with this lies with the potential for making of anonymous reports by disgruntled employees whose actions could cause unnecessary interventions by HMRC with costs being incurred either by way of disruption to business or the cost of engaging profession representation.

HMRC has advised that whilst it is currently reviewing the information received before taking any action, it will continue to encourage employees to report perceived abuses of the scheme via it’s portal on the.GOV website. Examples of abuse include where an employer claims a grant but does not pay this to the employee(s). using the grant to fund a redundancy payment, making employees work whilst on furlough or asking them to work while on furlough.

• Naming fraudulent companies and directors.
• Requesting repayment of monies claimed and possible penalties
• Criminal investigation and prosecution under the Fraud Act 2006

As anyone who has had dealings with HMRC’s investigation officers, just proving your innocence can be a challenge once an enquiry has commenced, so do not hesitate to seek professional assistance if required.

HMRC has announced new fuel rates for company cars. They apply to all journeys on or after 1 June 2020, until further notice. For one month from the date of the change, employers may use either the previous or new rates.

The new rates are;

Engine size                                        Petrol                   LPG

1,400cc or less                                 10p                      6p

1,400cc to 2,000cc                          12p                     8p

Over 2,000cc                                    17p                    11p

Engine size                                                            Diesel

1,600cc or less                                                          8p

1,600cc to 2,000cc                                                   9p

Over 2,000cc                                                             12p

An in depth discourse into the nuances of the impact of #covid19 and #HMRC‘s statutory residents test (SRT) on #globalmobility staff and individuals delayed in the UK following #lockdown. A definite must read for both professionals and individuals affected.